If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.

New York state proposes regulatory framework for virtual currencies

NEW YORK, July 23, 2014 (Thomson Reuters Accelus) – The New York State Department of Financial Services (DFS) is seeking public comment on a proposed “BitLicense” regulatory framework for New York virtual currency businesses, DFS Superintendent Benjamin M. Lawsky said Thursday.

New York state proposes regulatory framework for virtual currencies

The proposed framework – the first on a state-wide basis in the country – will require licensees to have strong compliance and supervisory policies and procedures.“We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity – without stifling beneficial innovation. Setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets,” Lawsky said in a release.

New York state proposes regulatory framework for virtual currencies

The proposal addresses consumer protection, anti-money laundering compliance, and cyber security rules tailored for virtual currency firms, among other concerns. The DFS may conduct additional review and revision based on the comments before finalizing the regulatory framework, the agency said.“We recognize that, as the first state to put forward specially tailored rules for virtual currency firms, continued public feedback will be an important part of finalizing this regulatory framework. We look forward to carefully and thoughtfully reviewing public comments on our proposal,” Lawsky added.

New York state proposes regulatory framework for virtual currencies

Upon completion of any transaction, provide the customer with a receipt showing the firm’s name and contact information, including a telephone number for answering questions and registering complaints; the type, value, date and precise time of the transaction; the fee charged; the exchange rate, if applicable; a statement of the firm’s liability for non-delivery or delayed delivery; and a statement of the firm’s refund policy.

New York state proposes regulatory framework for virtual currencies

Establish and maintain written policies and procedures to resolve consumer complaints in a fair and timely manner, and provide a clear and conspicuous notice to consumers that they can bring complaints to DFS’s attention for further review and investigation.